Square Enix sells Western studio amid fears of ‘cannibalizing’ Japanese game sales

During the most recent quarterly earnings call, Square Enix Explains the reasons for selling its Western studio.

Back in May, Square Enix announced the sale of Crystal Dynamics and Eidos Montreal, the studios behind Tomb Raider and Deus Ex, respectively. Now, as Polygon reports, Square Enix explained in its financial results that this is due to the fact that games from its Western studios may have cannibalized sales of other titles. David Gibson.

Gibson noted that selling the studio and its IP would have the potential to “improve capital efficiency,” meaning making more money compared to spending in order to continue making more money.According to Gibson, the studios were sold to hugger group

is part of its first phase, the second of which is “diversification of studio capital structure”.

Essentially, games are getting more expensive to make, and since Square Enix has full ownership of so many games, it needs to be picky about where to put resources. In the long run, it appears that Square Enix is ​​looking to sell a stake in its company to make things a little easier.

There are many rumors that sony

Might buy Square Enix, but it makes more sense to do something similar to Sony Bunge, which acquired the Destiny developer, but doesn’t plan to take the game away from other platforms.Since Square Enix does make a lot of Nintendo switchand may struggle even more game station or Xbox.

Square Enix’s departure from Western Studios isn’t too surpr ising, especially considering Marvel’s Guardians of the Galaxy Vol. Marvel Avengers

Although the latter is clearly plagued by many problems, it has not been as successful as it had hoped.